Large PCB factories collectively raise prices by 20-30% : the industry speeds up the reshuffle of small businesses facing a wave of closure
Smart phones are the largest consumer electronics products shipped at present, and the increase in the price of components has affected the entire industrial chain.
The most typical ones are memory chips and capacitors, both of which have been increasing in price continuously. The two companies that have been calling for the biggest price increases are Taiwanese companies, both memory chips and capacitors.
For example, on July 17, the director of China division of China giant corporation of China said that MLCC would reduce its price by 10%. However, on July 18, China giant immediately issued a clarification notice, refuting the rumors of loose prices of MLCC, saying that the supply and demand of MLCC could not be balanced, and there was no sign of loose prices and remained optimistic about the industrial prospect.
Not only does the Chinese giant refute the news, but some agents and traders are also encouraged to refute it!
When the price increases become the means to seek excessive profits, the adverse news of the market caused by the resistance conceivable!
It is reported, the industry said that from the agent to start the first prices last year, this year just round up to the EMS factory, in general, passive components factory most of the supply of goods by EMS factory, the Chinese mobile phone brand factory, and apple and other manufacturers, amounted to about 80%, the agent is also spot a part accounted for only 20% of the ratio of the gaps, which is over this year is the outbreak of MLCC factory price effect, EMS supply shortage, to the spot market to sweep goods, cause the spot price soared, pushing up passive factory agent revenue.
Except MLCC, recently, the news that the PCB maker started collective price increases, price increases will reach 20 to 30%, from the point of view of the current time node, in the second half of the electronic industry status is better than the first half of the off-season, many enterprises have begun for the second half of the shipment for capacity, began to rise in price at this time, certainly will be very bad impact on industry.
By this good news, PCB related concept machine almost collective fluctuation limit, such as ultrasonic electron, bomin electron, so, what are the reasons behind the price increase of PCB big factory?
Large PCB factories collectively raise prices by 20-30% : small businesses face a wave of closures
On July 18, according to media reports, due to environmental protection problems and the increase of copper and other raw materials (copper coated panels, copper foil), domestic PCB factories increased their costs, leading to a surge of collective price increases. Since July, PCB factories including omway electronics and jiantao group have issued price increases notices.
As for the Taiwan factory, according to the industry, there is still a lot of idle capacity, it is not easy to follow the price increase at this stage.
First of all, the price of raw materials has been raised. The copper price has attracted the most attention, and the price of copper has increased significantly the cost of copper foil substrate factory and PCB manufacturer.
According to industry statistics, the cost of PCB raw materials accounts for 33%, among which, the cost of copper foil base plate for thick copper accounts for 18% to 20%. In addition, copper foil accounts for 30% of the total cost of thick copper foil base plate.
In addition, the domestic market in recent years, environmental awareness, from the end of 2017, jiangsu kunshan limits, to the limits, zhuhai, Shanghai and shenzhen to hunt down and so on, based on the sewage problem of PCB industry, PCB factory at present stage, no matter the Taiwanese, local, and even foreign investment, mainland China is not popular industry, therefore, PCB industry in addition to face costs continue to rise to the pressure, the capacity to do the shrinking, ran away and eventually have to face the pressure.
As a result, PCB industry has been under pressure to increase the cost of raw materials within the PCB industry, and the problem of limited production capacity caused by environmental protection issues outside has started to cause PCB enterprises in the palace to inform customers of the price increase since July.
As for the part of the Taiwan factory, due to the unsatisfactory demand, there are still a lot of restrictions on the production capacity. In addition, the price increase of the copper foil base plate factory in the second quarter of this year is not obvious.
As for the news of the price increase, according to the mobile phone news online from the industry, the price increase is mainly caused by the above two factors, one is the rise of raw materials, the other is the severe restrictions of the ministry of environmental protection.
However, as far as I know from the shennan circuit, the other side said that at present there is no price increase, nor is there a drop!
In addition, some people in the industry told me: "I have not seen any direct documents to confirm whether the price increase is true. There is environmental pressure.
More importantly, under the pressure of environmental protection and raw materials, the industry is upgrading and transforming and eliminating backward production capacity.
Some organizations believe that with the update and replacement of 5G communication equipment and the localization of materials, the industry will realize the logical transformation from cycle to growth.
However, for small and medium-sized manufacturers, it will undoubtedly cause a great impact, especially for some small non-compliance manufacturers, without huge capital upgrade, they will face the risk of bankruptcy!
As early as 2016, copper prices began to rise in March, led by China's second largest copper foil substrate manufacturer, jiantao chemical (now renamed jiantao group), according to long-term tracking observation by mobile phone news online.
By the end of 2016, both the copper foil of lithium battery and the standard copper foil of huai-huai-huai type had been in a state of no market price.
In 2017, the price of copper foil/copper clad plate has not been alleviated!
Due to the price increase of copper foil/copper clad plate, PCB manufacturers price is also increased!
Before this mobile phone newspaper online had reported many times, PCB manufacturer builds tao to accumulate layer board and build tao chemical to rise ceaselessly, promote revenue and share price also all the way up!
In 2016, some of the copper foil industry has been unable to cope with the long-term low price closure of the factory and the lithium battery required for some copper foil to turn into electric vehicles. The supply of copper foil required for printed circuit boards (PCB) and copper foil substrate (CCL) has been in short supply.
According to the China chemical and physical power industry association, the price of lithium battery raw materials, including copper foil, electrolytic solvents and drilling salt, has risen significantly, with some products even increasing by 50%.
The copper clad plate is also affected by the lithium battery and automobile market, resulting in the shortage of goods and increased prices!
On August 21, 2017, jiantao laminates, the world's largest copper plating supplier, issued another price increase notice. From now on, it will increase the price of its PCB laminates (copper clad laminates) and PP (semi-cured films) by 10 yuan/piece and 10% respectively.
This is the third time the company has issued a price increase notice since July. The previous two days were July 7 and 26 respectively, and the price increases were 10 yuan/zhang and 10 percent respectively.
At that time, jiantao chemical also said that in the second half of the year, the electronic products market entered the traditional sales peak season, copper clad panel demand significantly increased, the supply shortage situation is more obvious, the group has raised the price of products again.
The group is increasing the sales of high-value copper clad panels, and the new production capacity will be released gradually. The operating efficiency is expected to continue to improve.
The number of orders in the PCB department increased considerably, and the production capacity of high-end PCB was in short supply.
On the evening of November 21, 2017, according to a statement issued by shengyi technology, the company will issue convertible company bonds with a total face value of 1.8 billion yuan for a period of 6 years.
It is mainly used in the industrialization project of high heat conduction and high density printed circuit board (phase ii), the construction project of 17 million square meters of copper clad plate and 22 million square meters of commodity bonded sheet, of which the former will invest 10.
1.2 billion yuan, using 700 million yuan of the raised capital, the latter will invest 1 billion yuan.
00 billion yuan, use raise capital of 900 million yuan!
In addition, the new r&d office building will be invested 2.
The total investment of the three projects will reach 23. 8 billion yuan.
1 billion yuan!
From an environmental point of view, as early as in December 2017, more than in kunshan, jiangsu province industrial enterprise received notice: on December 24, 2017, kunshan city two minus six special action put three ascend leading group office issued 263 (2017), 186 kunming decided to suzhou creek Zhao Tun basin (shipu) and so on three sections belong to industrial enterprises since December 25, 2017, January 10, 2018 during the implementation of the comprehensive production, expire according to the condition of water quality, to decide whether to delay.
A total of 270 industrial enterprises will be shut down.
Among these 270 enterprises, there are 3 resistance enterprises, 1 semiconductor enterprise and 100 PCB circuit board enterprises.
Several companies confirmed they had been notified.
Zhou guohua, deputy director of the kunshan high-tech zone's work safety supervision and administration and environmental protection bureau, confirmed the notice's authenticity, but said the plant was not shutting down its production entirely, but was simply requiring the process of producing waste water to reduce emissions.
In addition, according to media reports, the current domestic limits caused by subsequent effect fast fermentation, industry insiders said recently that the related policies have blow not law-abiding second-line local factory, the local atmosphere and two years ago in Taiwan taoyuan area began to attach importance to environmental protection situation, recycling machine factory for environmental protection mechanism has been mining height are broken specification production, relatively unaffected.
Domestic this year has been carried out for many electronic manufacturing and chemical material industry environmental audit, especially the new green taxes this year on the road, although the official to replace the discharge calculation is given priority to, although if a discharge may be charge by the authorities in the zone under green taxes fund, but the actual operation still need to waste disposal contractor related fees, so is equal to add a green taxes.
At least one wave of small and medium-sized PCB manufacturers in China is facing a wave of bankruptcies this year, according to local industry insiders, due to high production costs and a crackdown by mainland authorities on illegal waste water and waste gas producers.
In addition, according to the author, PCB industry in the past two years has been reshuffle, no doubt, under the supervision of relevant policies, reshuffle speed will accelerate!
It also emphasized that: "the PCB industry reshuffle starts from the fluctuation of raw material prices, and then accelerates the capital market, and the environmental protection department gives a heavy blow. Multiple factors have accelerated the industry reshuffle and eliminated the unqualified small enterprises, which has led to the rapid increase of industry concentration in the past two years."
According to jin ze enterprise development director Zhu Rongwei said: "green taxes imposed, raw material rises in price, environmental protection wave effect, the reform of the supply side is still is the main melody industry, to further improve industry concentration, in the fourth quarter of 2017 multiple large orders packed, selective cutting of single case, at the same time, a lot of capacity under construction, and transfer to mainland China and the west."
It also emphasized that from January to October 2017, the investment of domestic enterprises increased by 30 percent.
Among them, the joint-stock cooperative enterprises and state-owned enterprises grew rapidly, with the growth rate reaching 95 percent.
PCB industry capital prevails both listing and integration: future or integration of packaging substrate business
In recent years, the production capacity of the PCB market has been highly concentrated. According to data provided by Kim baize, the top 40 manufacturers of PCB in the world accounted for over 60% of the whole industry in 2017, up 15 percent from 2016.
From the perspective of global PCB industry growth, the United States has seen negative growth, Japan has stopped growing, Taiwan, South Korea and mainland China have witnessed rapid growth. It is worth mentioning that Japan has witnessed rapid growth of fan-out packing boards, class boards and FPC!
From the perspective of A share PCB manufacturer, most of the enterprises achieved high growth in 2017. According to the statistics of jinbaize data, hongxin electronics, chongda technology, shenghong technology, zhongjing electronics, oshkang, bomin electronics, mingyang electric road, jingwang electronics, shennan circuit, ultrasonic electronics, ludian shares, etc. increased by more than 20%.
"Although overall growth slowed in the first quarter of this year, some companies achieved rapid growth," said zhu rongwei, director of corporate development at kimberly-clark.